Weak Trading in U.S. Stocks; Deficit Declines

123jump.com Staff
13 Jan, 2009
New York City

Fed Chairman Bernanke stressed that more capital may be needs to support financial system and a need for fiscal programs. UK trade deficit grows. Stocks in Japan plunged 4.5%. Exports in China declined on slowing global trade.

[R]5:00PM New York – 11:00PM Frankfurt, 4:00AM Sydney – Fed Chairman Bernanke stressed that more capital may be needs to support financial system and a need for fiscal programs. UK trade deficit widens. Stocks in Japan plunged 4.5%. Exports in China declined on slowing global trade.[/R]

Fed Chairman Bernanke highlighted that recent easing in the monetary policy may not be enough and fiscal measures may be needed to revive the economy. For the first time, chairman acknowledged that the weakness in financial monitoring by regulators and at rating agencies contributed to the crisis.

Adobe Systems fell after an analyst downgrade. Alcoa declined after the company reported first quarterly loss in seven years as prices and sales of aluminum declined. Infosys rose after it reported earnings rise of more than a third.

U.K. trade deficit widens to £4.5 billion in November from £3.9 billion in October. Latest month real estate sales per agent fall. Tesco Group comparable sales in UK rise 2.5%. International sales rose 32.7% helped by favorable exchange rate and sales in Asia edged up 43%.

Stocks in Japan plunged 4.5% after a day after holiday. Rising yen, falling corporate profits and declining current account surplus added to investors anxieties. Sony and Toshiba expect operating loss for the current fiscal year. Current account surplus plunged 66% in November.

Exports from China declined 2.8% to $111.2 billion and imports declined 21.3% to $72.2 billion. For the year 2008, total international trade rose 17.8% to $2.56 billion, but the exports and imports are expected to slow sharply in the first half of the year.

Indian government orders criminal probe in Satyam scandal. Wipro was banned for from the World Bank. The largest real estate developer in India, DLF raised 1,700 crore rupees in the debt market lifting other real estate stocks. Infosys surged on better than expected earnings.

Stocks in Australia continued their slides as metals and oil prices decline in the region. Sydney benchmark index declined nearly 1% and resource and financial stocks led the decliners. Rio Tinto delayed the second project mining project as the worldwide slowdown intensifies.

American Markets Reviews

Dow Jones Industrial Average fell 25.41 or 0.30% to a close of 8,448.56, S&P 500 increased 1.53 or 0.18% to 871.79, and Nasdaq Composite Index increased 7.67 or 0.50% to a close of 1,546.46. In Toronto TSX Composite increased 168.22 or 1.91% to close at 8,961.55.

In South American trading Brazil Bovespa Index increased 0.4% to 39,554.23 and Mexico Bolsa Index dropped 0.5% or 114.97 to 21,047.30.

Argentina increased 0.4%, Chile increased 0.09%, Peru rose 0.2% but Colombia declined 0.23%.

U.S. Stock Movers

Of the stocks in S&P 500 index, 254 increased, 239 declined and 7 were unchanged.

Lexmark International led declined in the index with a loss of 13% followed by losses in Amphenol Corp of 7.9%, in Goodyear Tire of 7.8%, in Precision Capstone Parts of 7.4%, in MEMC Electric Materials of 7.4% and in Adobe Systems of 7%.

Developers Diversified Corp led gainers in the index with a rise of 16% followed by gains in Lincoln National Corp of 14.6%, in Thermo Fisher of 8.6%, in Varian Medical Systems of 8.5% and in CB Richard Ellis of 7.4%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 422.89 or 4.79% to 8,413.91, Hang Seng index in Hong Kong decreased 302.95 or 2.17% closed to 13,668.05 CSI 300 index in China lower 44.50 or 2.32% closed to 1,876.18. ASX 200 index in Australia decreased 28.70 or 0.78% closed to 3,654.60. The KL Composite index in Malaysia lower 9.87 or 1.07% closed to 913.70.

The Kospi Index in South Korea increased 10.96 or 0.95% to close at 1,167.71. SET index in Thailand closed lower 18.99 or 4.19% to 433.81 and JSE Index in Indonesia decreased 6.82 or 0.48% closed to 1,399.73. The Sensex index in India decreased 38.69 or 0.48% closed to 9,071.36.

Europe Markets Review

In London FTSE 100 Index closed lower 27.04 or 0.61% to 4,399.15, in Paris CAC 40 Index decreased 48.23 or 1.49% to close at 3,197.89 and in Frankfurt DAX index lower 82.68 or 1.75% to close at 4,636.94. In Zurich trading SMI decreased 57.46 or 1.03% to close at 5,534.33.

Commodities, Bonds and Currencies

Yields on 10-year bond declined to 2.29% and on 30-year bonds increased to 3%.

The U.S. dollar increased to $1.3172 to a euro and against the Japanese yen fell to 89.39 yen.

Immediate futures prices of Texas crude oil increased to $1.25 to $38.84 a barrel, for natural gas decrease 35 cents to $5.20 per mbtu and gasoline prices increased 6.95 cents to 115.35 cents a gallon.

Futures of corn decreased 18 cent to $3.62, soybean decreased 5.50 cents to $9.71, sugar increased 0.06 cents to 11.53 a pound and wheat declined 1 cent to $5.70 a bushel.

In metals trading, copper prices rose 3.65 cents to $1.52 per pound, gold increased $0.20 to $821.20 per ounce and silver was unchanged to $10.75.